By Brittney Sherman
Semiconductors were invented in the U.S. however the nation’s hold on the industry has been on a steady decline. In 1990, the U.S. accounted for around 40% of global semiconductor fabrication capacity, but by 2019, that number had dropped to about 11%. Within the U.S., California has long been the top state in the nation for the semiconductor industry, providing 63,251 semiconductor jobs and being the home to 626 semiconductor manufacturing establishments.
In 2022, $50 billion was allocated to the Department of Commerce to support a range of programs focused on strengthening and revitalizing U.S. semiconductor research, development, and manufacturing. The three main initiatives of the CHIPS for America program are: large scale investment in leading edge manufacturing, new manufacturing capacity for mature and current-generation chips/new and specialty technologies/industry suppliers, and strengthening U.S. leadership in R&D. California semiconductor companies can currently leverage a variety of incentive and workforce development programs, including the California Competes Tax Credit and Research & Development Tax Credit, but it’s not enough. To bridge the gap, the CHIPS program will offer additional incentives to spur greater California semiconductor investment and expansion, while also supporting American workers.
Visit the Go-Biz resource page to learn more about details on available state programs, data, updates, and news on all things CHIPS.
Have questions? Contact City of Morgan Hill Economic Development Director Matt Mahood at Matt.Mahood@morganhill.ca.gov